Sources: Cowboys CB Trevon Diggs signs 5-year, $97M extension

Trevon Diggs signs 5-year, $97M extension with Cowboys (0:45)

Ed Werder details the Cowboys coming to an agreement on a 5-year, $97 million extension with cornerback Trevon Diggs. (0:45)

OXNARD, Calif. -- Not two hours after discussing the importance of keeping their homegrown talent on long-term deals, the Dallas Cowboys signed two-time Pro Bowl cornerback Trevon Diggs to a five-year extension that sources said is worth $97 million and includes a $21.25 million signing bonus.

Diggs is guaranteed $42.3 million, a source said.

Diggs was scheduled to be an unrestricted free agent after the 2023 season, but he is now signed through 2028. The deal can max out at $104 million if he hits on incentives.

The Cowboys picked Diggs in the second round of the 2020 draft, and he has 17 interceptions in his first three years. In 2021, Diggs led the NFL with 11 interceptions, tying a franchise record held by Everson Walls. That year, he became the first Cowboys cornerback to earn All-Pro honors since Deion Sanders in 1999.

Diggs had an interception in each of the first six games of the 2021 season to become one of four players to have a pick in that many games to start the season. As a rookie in 2020 and again last season, Diggs had three interceptions.

In May, Diggs was asked about his future and responded, "Hopefully something gets figured out. I love Dallas. I love being here. We'll see."

Diggs' $19.4 million average ties him for fifth among the highest-paid cornerbacks in the NFL with New Orleans' Marshon Lattimore. Green Bay's Jaire Alexander ($21 million), Cleveland's Denzel Ward ($20.1 million), Miami's Jalen Ramsey ($20 million) and Baltimore's Marlon Humphrey ($19.5 million) have higher average salaries.

Now that Diggs' contract is secure, the Cowboys can continue to work on deals for Pro Bowl wide receiver CeeDee Lamb and right tackle Terence Steele.

The Cowboys have Lamb under contract through 2024 after picking up his $17.99 million fifth-year option but would like to sign him to a long-term deal this summer as well. Steele, who is set to be an unrestricted free agent after this season, is coming off a major knee injury but is another building block the Cowboys want to secure. Micah Parsons is eligible for an extension for the first time in 2024.

Dak Prescott is also signed through 2024 and the Cowboys have expressed a desire to get another multiyear extension done with their quarterback, but there have not been in-depth negotiations, per a source.

Before the Diggs deal, the Cowboys had $21.8 million in salary cap room, according to NFLPA figures.

"I actually feel really good about where we are, not only in the intermediate, but also the long term [regarding the cap]," executive vice president Stephen Jones said. "I think our contracts are all structured in a good way and we're very motivated to sign these young guys. That's certainly why you hope to have success and I think we have had success drafting. In terms of the young players that we've got coming up, whether it's Diggs or Lamb or Micah or Steele or whoever may be coming up and we're constantly in communication. I feel like we've got great rapport with agents. ... Certainly all these guys are represented because the money is so big, by top-of-the-line folks, so you just continue to grind and look for windows and opportunities to get these things done."